Bryan, assuming that both images are about the same size and resolution, start with both images open in Elements (PSE6). One is in the workspace, select the Move tool (V), click and drag the image down and drop it on the image in the Photo Bin.

You should now have a two layered file in the active workspace. You may need to adjust the size of on or more of the image layers. Select the move tool, click the appropriate layer, and grab the corner handles to adjust the image-layer size as needed.

Now, select the top layer by clicking on it in the layer panel, and then adjust the opacity.

Probably. Just make sure you drag down onto the image in the photo bin as opposed to dragging an image up from the photo bin and dropping the image onto the one in the active workspace. You can do it that way, but you will end up with a frame layer that while very cool, it has very different properties and may be a bit more than you need right now.

Yes, all versions of PSE work the same way in this regard. However, the image you posted looks like part of the overlaid photo is more opaque than the rest. This was probably done with a mask. But you can get a similar effect by following Jeff's instructions.

Diana

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